Case Study on Business Strategy in the Australian Solar Energy Essay

Case Study on Business Strategy in the Australian Solar Energy Industry - Essay Example Appropriately enough most cutting edge research on implementing solar energy solutions is also being carried out in Australia. Various new companies and old ventures have begun to frequent the Australian solar energy market. CBD Energy is one such company with a two decades old history in the alternative energy industry. (ASX, 2011) This text will attempt to analyse the internal strengths and weaknesses possessed by CBD Energy that will enable it to deal with the solar energy industry effectively. 2. Analysis of the firm's internal resources and/or capabilities Competitive Advantage CBD Energy possesses significant competitive advantages against its competition within the Australian market. CBD is strongly connected to international global renewable companies such as Datang, SOLON, Tianwei and Oelmaier Technologies which ensure that technological access and supply are always available. This is essential as the global solar energy products manufacturing industry is finding itself unde r increased pressure to fulfil customer orders due to inflated demand. Moreover CBD has begun to assemble solar inverters as of January 2011 and had produced 500 units by February 2011 while annual projections put the figure at 20,000 units. This will ensure that CBD has alternative revenue streams in place as well and this will also ensure that CBD has critical components available at its disposal in required quantities at all times. Another significant advantage displayed by CBD is its ability to assemble key components for PV installations on rooftops. Most other companies in the Australian solar industry market do not have the requisite expertise as yet. This aids in reducing input costs, getting government tenders as these products are made in Australia and ensure timely access to required components. The recent opening of an office in China will enhance CBD’s manufacturing standing and will aid its efforts to manage outsourced components. (CBD Energy, 2011a) Consequentl y the lowered prices will encourage a new wave of buyers to invest in solar technology as it becomes more affordable for individual family units. Analysis of Resources Resources Indicators Financial Share value has been unsteady for the last fiscal year; Investors and speculators are pulling out. Organisational Employees are well paid. Physical Company is expanding its manufacturing and servicing capabilities. Technological Company’s resources are being updated continuously with new installations; Continuous improvement in products and services is underway. Human The management team is composed of experts from respective fields. Innovation New methods are being developed for servicing and installations. Reputation Sales are going up indicating developing market reputation. CBD is presenting a mixed picture in terms of its key resources. In terms of its financial resources, the share value of the company has been declining steadily (ASX, 2011) over the entire year (see Appendi x â€Å"A†). While some pressure may be attributed to a low performing stock exchange market but a major reason is the removal of accrued profits to support business expansion. Traded volumes have also remained low. Various speculators and investors are also pulling their stock out of the company although the key investors are still in place (see Appendix â€Å"